Top 8 features of chinese glyphosate industry in 2013

There were top eight features of Chinese glyphosate industry in 2013. These include the stringent inspection and monitoring against the glyphosate industry, the glyphosate prices hitting new peaks,
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There were top eight features of Chinese glyphosate industry in 2013. These include the stringent inspection and monitoring against the glyphosate industry, the glyphosate prices hitting new peaks, the significant increase in the glyphosate output and export volume, etc.

Transcript

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Top 8 features of Chinese glyphosate industry in 2013
Tag:Glyphosate,registration,price,volume,export,overview,outlook,environmental,protection,e
nvironmental,pollution,revenue,profit,operating,performance
Summary: There were top eight features of Chinese glyphosate industry in 2013. These
include the stringent inspection and monitoring against the glyphosate industry, the glyphosate
prices hitting new peaks, the significant increase in the glyphosate output and export volume,
etc.
1. The environmental protection inspection against glyphosate industry was unprecedentedly
stringent.
On one hand, the environmental protection policy of large-scale inspections on the glyphosate
industry was released for the first time. On 21 May, 2013, the Ministry of Environmental
Protection of the People's Republic of China released a document——Notice Regarding the
Environmental Protection Inspection against Glyphosate (PMIDA) Manufacturers, and the
inspection will last to 2015. This means that the glyphostate industry will be tightly regulated
and monitored for environmental protection purposes for about two years and six months.
On the other hand, the environmental monitoring against the glyphosate industry was
unprecedentedly stringent. Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejian
Wynca) and Zhejiang Jinfanda Bio-Chemical Co., Ltd. (Zhejiang Jiafanda) were both involved
in a court case over various environmental pollution offences. Zhejiang Jinfanda's general
manager Pu, its deputy general manager Du and Zhejiang Wynca's safety and environmental
protection department manager Gu have been arrested by the Zhejiang Provincial Public
Security Department. So far, there is no news about the final judgment. Given the current
situation, the final judgment is unlikely to be positive for the suspects.
2. Glyphosate prices hit new peaks.
Glyphosate technical and formulations' ex-works prices in 2013 all represented new peaks
since 2009. Specifically, the glyphosate technical average ex-works price in 2013 was
USD5,988/t (RMB36,708/t), up by 27% over 2012. The average ex-works prices of glyphosate
41% IPA, glyphosate 50% SP, glyphosate 62% IPA and glyphosate 75.7% WSG in 2013
respectively were USD2,792/t (RMB17,113/t), USD3,310/t (RMB20,292/t), USD3,428/t
(RMB21,013/t) and USD5,245/t (RMB32,153/t), up by about 27%, 26%, 23% and 28% over
2012.
3. Glyphosate output and export volume increased significantly.
The environmental monitoring against the glyphosate industry was strict in 2013. However, this
did not prevent China's glyphosate technical output from increasing. The total output was
approximately 480,000 tonnes in 2013, up by 10% over 2012. Besides, the export volume of
glyphosate A.I. was about 360,000 tonnes in the first eleven months of 2013. The total export
volume of glyphosate A.I. is estimated to be about 400,000 tonnes in 2013. Thus, the export
volume in 2013 will increase about 29% over 2012.

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4. Production capacity continued to expand.
On one hand, Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd. (Sichuan Fuhua)
became the largest glyphosate manufacturer in Asia, with a 120,000t/a production capacity.
There are also many other companies trying to construct glyphosate production capacity. This
includes Sichuan Hebang Co. Ltd. (Sichuan Hebang) and Lier Chemical Co., Ltd. (Lier
Chemical).
Sichuan Hebang, whose main products are soda ash and ammonium chloride, planned to
spend one year to construct a 50,000t/a glyphosate production project with a total budget of
USD81.81 million (RMB501 million). At present, Sichuan Hebang is still preparing funds for the
construction. Unlike Sichuan Hebang, which has not started construction of its glyphosate
project, Lier Chemical claimed that in Nov. 2013 its subsidiary——Jiangsu Kuaida
Agrochemical Co., Ltd. was trialling its 10,000t/a glyphosate production line, and that this line
was expected to be launched in the beginning of 2014.
5. Almost every glyphosate manufacturer made a full-year profit in 2013.
Because of the prosperous glyphosate market in 2013, almost every Chinese glyphosate
manufacturer made a full-year profit in 2013. The performances of the following three
companies exemplify the strength of the glyphosate industry. The operating profit in the first
nine months of 2013 of Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca),
Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. and Anhui Huaxing Chemical
Industry Co., Ltd. respectively were USD74.36 million (RMB455.35 million), USD48.20 million
(RMB295.16 million) and USD5.22 million (RMB31.91 million). These three companies'
operating performances in Q4 2013 mean that they will certainly record high full-year profits for
2013.
6. Chinese glyphosate companies not to have engaged in dumping conduct in Australia.
On 24 June, 2013, the Australia Customs and Border Protection Service released Notice No.
2013/51, showing that the China's glyphosate companies that exported glyphosate
formulations to Australia were judged not to have dumped their products into Australia.
Subsequently, Australia terminated the anti-dumping investigation that had been resumed on
16 Nov., 2012. This decision would help China's glyphosate companies develop in Australia's
glyphosate market. Apart from Australia, China's glyphosate companies have had
anti-dumping investigations in other foreign countries. The EU started to levy a 48%
anti-dumping duty on Chinese glyphosate in 2000, and subsequently carried out anti-dumping
investigations on multiple occasions against China's glyphosate. However, China eventually
won this anti-dumping case in July, 2012.
7. Some Chinese pesticide companies continued to expand their overseas glyphosate market.
Sinochem Group replaced Nufarm and took over the exclusive distribution rights. Nufarm
Limited (Nufarm)'s exclusive distribution rights for Roundup branded glyphosate in Australia
and New Zealand were terminated on 28 Aug., 2013. Given the huge glyphosate market in
Australia and New Zealand, this represents a huge step for Sinochem Group in its strategy to